Below is a list of stocks that pay monthly dividends (i.e., monthly dividend stocks).
A lot of these are real estate investment trusts (REITs) and many are business development companies (BDCs).
Excluded from the list are oil and gas royalty trusts because of their higher risk. Some O&G royalty trusts may pay a monthly dividend, but those dividends tend to not be very stable. Moreover, the underlying security can be highly volatile as well.
Let’s take a look at the list.
Monthly Dividend Stocks
- Agree Realty (ADC)
- AGNC Investment (AGNC)
- ARMOUR Residential REIT (ARR)
- Grupo Aval Acciones y Valores (AVAL)
- Banco Bradesco S.A. (BBD)
- Broadmark Realty Capital (BRMK)
- Chatham Lodging (CLDT)
- Choice Properties REIT (PPRQF)
- Chorus Aviation (CHRRF)
- Cross Timbers Royalty Trust (CRT)
- Dream Industrial REIT (DREUF)
- Dream Office REIT (DRETF)
- Dynex Capital (DX)
- Ellington Residential Mortgage REIT (EARN)
- Ellington Financial (EFC)
- EPR Properties (EPR)
- Exchange Income Corporation (EIFZF)
- Gladstone Capital Corporation (GLAD)
- Gladstone Commercial Corporation (GOOD)
- Gladstone Investment Corporation (GAIN)
- Gladstone Land Corporation (LAND)
- Global Water Resources (GWRS)
- Granite Real Estate Investment Trust (GRP.U)
- Horizon Technology Finance (HRZN)
- Inter Pipeline (IPPLF)
- Itaú Unibanco (ITUB)
- LTC Properties (LTC)
- Main Street Capital (MAIN)
- Orchid Island Capital (ORC)
- Oxford Square Capital (OXSQ)
- Pembina Pipeline (PBA)
- Permian Basin Royalty Trust (PBT)
- Pennant Park Floating Rate (PFLT)
- PermRock Royalty Trust (PRT)
- Prospect Capital Corporation (PSEC)
- Permianville Royalty Trust (PVL)*
- Realty Income (O)
- Sabine Royalty Trust (SBR)
- Stellus Capital Investment Corp. (SCM)
- San Juan Basin Royalty Trust (SJT)
- Shaw Communications (SJR)
- SL Green Realty Corp. (SLG)
- SLR Senior Investment Corp. (SUNS)
- Stag Industrial (STAG)
- Superior Plus (SUUIF)
- TransAlta Renewables (TRSWF)
- U.S. Global Investors (GROW)
- Vermilion Energy (VET)
- Whitestone REIT (WSR)
Realty Income (O) is perhaps the best known of these stocks. It is part of the S&P 500 and even calls itself “the monthly dividend company.”
Why monthly dividends are useful
Monthly dividend payments are good for retirees who rely on dividend stocks for income.
Most dividend stocks pay quarterly. And many bonds pay on a semi-annual basis.
For most people, however, their bills run on a monthly cycle. Accordingly, they may find it more helpful to have investments that pay them on a monthly timeframe.
In general, monthly dividend stocks are better, all else equal, because they allow for returns to be compounded more frequently.
Many investors choose to use their dividends to automatically buy new shares (sometimes called a “DRIP” – short for “dividend reinvestment program”), which helps the compounding snowball effect over time.
Why to look beyond only monthly dividend stocks for your portfolio
Owning investments that pay monthly is nice, but it can overly constrict the viable investment universe.
While there may be only dozens of stocks that pay monthly dividends, there are thousands and thousands of stocks that pay quarterly dividends.
And monthly dividend stocks tend to be highly concentrated in certain sectors like real estate (via REITs) and business development corporations.
BDCs, in particular, tend to lend to riskier companies that otherwise can’t get funding from traditional bank loans or other types of investors.
There’s no such thing as a sure thing, so concentration in anything is dangerous. Putting your eggs in one basket can lead to big gains, but also ruinous losses.
Having a well-balanced portfolio can help you achieve a lot of the upside without having the unacceptable downside.